Gb Share Discussion Threads

[lomax99] 19/11/2021 08:44

The eye watering multiple paid, let's hope it truly is transformational. I have reduced my holding.

[hotfinance14] 19/11/2021 08:36

A retail price placementat 7.25 seems far to low. The questin is why was it so low.

[chillpill] 19/11/2021 08:35

Been waiting for an entry point into this quality company. I have a feeling this is the opportunity.

[wolansm] 19/11/2021 08:29

If the price had stayed where it was, retail etc would have unloaded the lot and profited handsomely in 1 day hence a swift correction.... Just need to sit on your hands..... I'm still in profit but that's an ouch for me....

[alphabeta4] 19/11/2021 08:27

Looks an overreaction to me - yes, the price paid was OTT but at £7.25 the acquisition is being valued at a PE of 9!

[hotfinance14] 19/11/2021 08:22

The market obviously thinks this is an awful deal by GBG.

[wad collector] 19/11/2021 08:22

Acquisition at any cost? Ouch.

[wolansm] 19/11/2021 08:19

What a gift to new investors... I'm speechless...

[lomax99] 19/11/2021 08:16

Not overly impressed, the retail offer was pathetic!!

[hotfinance14] 19/11/2021 08:09

SP opened at 15% down. How can this deal be good for investors ?

[lomax99] 19/11/2021 07:58

One hell of a discount, not really surprising given the eye watering multiple they are paying.

[bluntnib] 19/11/2021 07:49

PrimaryBid applications have been scaled back by 13% suggesting it was oversubscribed, at least by retail investors.

[hotfinance14] 19/11/2021 07:29

It does seem to be a high discount placing but I expect Chris Clarke our CEO knows exactly what hw is doing,

[davr0s] 19/11/2021 07:14

Watching with interest having sold out a few weeks back. 17% discount placing - that doesn't feel like it quite went to plan. I sold out some weeks ago as price wasn't reacting to positive earnings. Feels like they have gone for a Big Bang deal but have they taken too much on?

[marktime1231] 18/11/2021 18:30

A huge acquisition of Acuant at something like 12.5 x revenues or about 67 x profit which is jolly expensive, and given the costs involved in the deal, integration etc not going to be accretive until FY23. So a very bold move by GBG. All about facial recognition and AI to verify the face is real, present and matches the id being claimed. Issues possibly with the rep of facial recognition technology ethics, an AI research team and possible IP in Israel, data protection around ID and image libraries ... I'm sure they have done the due diligence and know the risks.

Looking forward to the reaction this might get.

A potential winner if they can maintain and harness Acuant's growth rate - they project 25% but it reads like their revenues have been growing by 100% pa perhaps because of Acuant's own acquisition programme.

A steamroller programme to complete the deal, diluting existing shares, loading up on debt. And one heck of a purchase price multiple.

GBG and it sounds like Acuant are great at turning business into cash and they obviously know how to work together.

[hotfinance14] 18/11/2021 17:25

Huge...highlights :

(the "Company" and together with its subsidiary undertakings "GBG" or the "Group")

Proposed Acquisition of Acuant Intermediate Holding Corp ("Acuant")

and

Proposed placing and retail offer of new ordinary shares to raise up to £305 million

GB Group plc (AIM: GBG), the expert in digital location, identity and identity fraud software, is pleased to announce that it has conditionally agreed to acquire the entire issued and to be issued share capital of Acuant (the "Acquisition"), a leading US Identity Verification and Identity Fraud prevention business, for a cash free, debt free enterprise value of $736 million (c.£547 million). The Acquisition brings together two of the leaders in the global digital identity market, with combined revenue of c.£265 million.

Strategic Rationale

· Combination creates a global leader in Identity Verification and Identity Fraud prevention

· Materially increases GBG's US presence and primes the enlarged group for accelerated global expansion

· Complementary customer base provides the enlarged Group with significant cross-selling opportunities and customer vertical diversification

· Accelerates GBG's data, product and platform strategy by approximately two years

· Highly additive in terms of scarce, high-quality talent with combination underpinned by long-standing commercial relationship, shared vision and culture

· Entirely consistent with GBG's long term strategy for global growth



Financial Highlights

· Acuant is a fast-growing, profitable and cash generative business which is strategically aligned with GBG and is expected to enhance the enlarged Group's revenue growth while maintaining its robust margin profile

· For the twelve months ended 30 September 2021 Acuant generated $58.1 million in revenue, an increase of 22% on the year to 30 September 2020, with the business continuing to trade strongly on a like-for-like basis since September

· Over the medium term Acuant is expected to grow annual revenue at c.25% driven by its higher rate of growth in subscription revenue

· Acuant achieved LTM adjusted operating profit to 31 July 2021 of $11.4 million1, representing a 20% margin

· With synergies the Acquisition is expected to deliver incremental operating profit of approximately £5 million in the financial year ending 31 March 2023

· Acuant is highly cash generative with cash conversion c.100% and negative net working capital

· The Acquisition is expected to be earnings neutral in FY23 (post-synergies), Acuant's first full year under GBG ownership, and to be accretive thereafter



Earnings neutral in FY23.Can somebody clarify the meaning of that statement ?

[lomax99] 18/11/2021 17:11

Meaty acquisition.

[hotfinance14] 21/10/2021 16:39

Hopefully there will be news of an acquisition in the coming months.

[marktime1231] 21/10/2021 10:50

A good report but a steady +10-15% outlook from here rather than phenomenal growth, and hints that GBG has been investing in systems and people, so after dividends net cash is advancing more steadily.

Perhaps not enough surplus cash for a worthwhile interim dividend, and for excitement we need news of signficant business development or the next acquisition which feels overdue. We need the buzz of an announcement for the next leg up.

Edison's upgrade is minor and calculates a more modest industry-average margin as revenues grow.

[hotfinance14] 21/10/2021 09:52

Eddison upgrades on strong H122 performance

hxxps://www.edisongroup.com/publication/upgrading-on-strong-h122-performance/30087

[aigvic] 21/10/2021 08:42

Outlook on RNS

The Board remains positive about the long-term prospects for GBG. Our markets have positive structural growth drivers, we continue to invest in our market leading technology and data, enjoy long-term customer relationships and we have an outstanding global team. As a result, the Board can confirm that the outlook for the second half of FY22 remains in line with its expectations.

Chris Clark, CEO of GBG, commented:

"We are pleased with the financial and operational performance over the past six months, particularly considering the conditions many of our customers and teams around the world continue to experience. We have made excellent progress against our growth strategy and have continued to support our customers throughout. This progress is testament to the hard work and dedication shown by the GBG team around the world. GBG remains excellently positioned at the forefront of the digital identity software industry."



The Group intends to publish its half-year results on 30 November 2021.

[hotfinance14] 21/10/2021 07:23

Superb trading update. Revenue for the 6 months £109m and profit £27.5m. These are
above concensus figures I believe. Cash at £39.5m. I expected this to be higher.

[hotfinance14] 15/10/2021 17:18

What a day..wooosh

[hotfinance14] 15/10/2021 13:56

With the new significnat contract in the Phillipines I am hoping for figures higher than the concensus. This will then be re-rated and should put us over £10.

[marktime1231] 15/10/2021 11:46

Stirring into life this morning, ahead of a trading update on the first half on 21 Oct. Hopefully building on the "good start" in the first quarter on which basis management were confident of delivering financial performance in line with expectations, not sure what the market has in mind maybe £100-110M revenues to match last year, and highly positive cash flow.

We ought to bounce back to 930p+ on a good report but it will take news of acquisition promising to fuel the next surge of growth in order to put the share price in the 1050-1100p bracket, which is the target for the more optimistic analysts.

Something in the digital ID verification on the move area?

The use of what looks like recording (and potential facial recognition) technology at the robo-checkout in my local Co-op is worrying me, someone clever will be able to match my image to my bank card and shopping habits, and if I was using a mobile app to pay or carrying an RF tracker device it would be able to follow me up the High St too. Out walking with friends yesterday including a guy who shares tracking data from his mobile phone with his family. They know when he is in the pub. They might even know what he had for lunch. Why would you!